Inflation is running at 3.5%
Pay rise calculator
A 5% raise doesn't mean 5% more in your pocket. See the extra per pay, how much of the raise you keep, and whether it keeps up with prices.
- Same engine as the pay calculator
- Private — runs in your browser
Latest annual CPI: 3.5% (to July 2026)
Extra in your pocket +$86.77 per fortnight · +$2,312 a year
You keep 68% of your $3,400 raise after tax
A 4% raise beats 3.5% inflation by 0.5%. In real terms your take-home rises -0.1%.
| Per year | Now | After raise | Change |
|---|---|---|---|
| Salary | $85,000 | $88,400 | +$3,400 |
| Income tax + Medicare | $17,400 | $18,488 | +$1,088 |
| Super | $10,200 | $10,608 | +$408 |
| Take-home | $67,600 | $69,912 | +$2,312 |
| Per fortnight (payslip) | $2,587.23 | $2,674.00 | +$86.77 |
| Marginal rate | 32% | 32% |
Frequently asked questions
Why do I only keep part of my pay rise?
Your raise is taxed at your marginal rate plus the 2% Medicare levy: 17% on income up to $45,000, 32% up to $135,000, 39% up to $190,000 and 47% above that in 2026–27. A HECS-HELP debt takes another 15–17c per dollar above the repayment threshold.
What pay rise do I need to keep up with inflation?
At least the annual CPI rate. Anything less is a real pay cut. Use the inflation calculator to see how much your pay has lost since your last raise.
Can a pay rise leave me worse off?
Not from income tax. Australia’s brackets are marginal, so only the extra dollars are taxed at the higher rate. But crossing some thresholds can cost more than the raise: the Medicare levy surcharge (if you don’t have private hospital cover) and family payment income tests.
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